MCAA Regional Report, Region F

Words: Justin Breithaupt, Al Slattery, Eddie Miller, Rob BarnesArkansas - Rob Barnes
Louisiana - Justin Breithaupt, Jr.
Oklahoma - Al Slattery
Texas - Eddie Miller

Workforce Development

Arkansas

There are no active programs at this time.

Louisiana

There are no formal training programs, Union or non-Union, at this time. Immigration has also become a factor in finding qualified workers.

Oklahoma

The only training is being done at the Career Tech Centers around the state. The Union Training programs are nonexistent.

Texas

North Texas remains the only marketplace trying to mitigate issues that have to do with the need for skilled tradesmen. General Contractors and Subcontractors are working together to develop industry standard practices for continuity across the market place in safety and general skill sets by respective trades with exception to the Masonry Trade. Concern is also generating around the fact that unemployment has remained high for a substantial period and workers are leaving the field of construction. There is a general sense of frustration for masonry contractors in Texas for the lack of qualified personnel while still amid a relatively slow marketplace in the North. United Masonry Contractors Association continues to have the only masonry training program which is run in cooperation with North Lake Community College.

Economic Conditions/Forecasts

Arkansas

While conditions have improved over the past year, the lending standards still remain tight and the market will continue to be slow. At this time, the institutional sector is probably the only part of the market that will see much activity where they try to take advantage of a depressed economy and lower construction cost.

The Residential market has not recovered and the signs are remaining slow, and what development we are seeing at this time has been due to the threat of higher interest rates.

Louisiana

The state continues to remain very depressed. There is little or no private work at this time and the rebuilding along the Gulf Coast remains Federal Government driven and very difficult to deal with.

Oklahoma

No Report from State Chairman.

We do know that the Casino market has been very strong along the Texas-Oklahoma border. The expansion at the Winstar Casino claims to make them the largest casino in the country and the Choctaw Casino in Durant, Oklahoma is not far behind.

There has been a small rise in institutional work but the private sector market continues to be very slow.

Texas

Economic conditions remain modest at best. Home prices are stable; single family has seen a modest recovery in 2013. The high end single family remains strong, multifamily appears to be the one sector that is experiencing significant growth especially on the high end, and commercial building is still lagging. Building remains strong in the institutional area of education which may have peaked in 2013, and healthcare remains stable.

Single Family: Single family is expected to continue to grow at a modest pace throughout 2014, the high end segment of the marketplace should continue to gain momentum ahead of the impending price escalations of material and eventually labor, 2014 is projected to continue to see significant improvement to existing homes.

Multifamily: 2013 was a big year for multifamily starts, 2014 is predicting to drop back to a more reasonable growth rate while still being one of the leading market segments.

Commercial Building: Commercial starts are still dismal and projecting flat for 2014. Owners and developers are continuing to work in the area of renovation or remodel. This segment rose but is very insignificant, less than 2% grown rate, and is expected to continue at this rate through 2014.

Institutional: Stable but very little growth in the K-12 segment, renovations or older schools and many of the bond packages were burned off prior to 2012. The public and private markets of higher education are beginning to level off and growth is slowing but remains stable. Local government seems to have slowed significantly and due to escalating costs and reduced revenues are being forced to cut rather than build.

Healthcare: Healthcare remains one of the stronger segments of the building market despite Washington mandates. With the baby boomers beginning to hit retirement age, the need for facilities continue to increase both in the public and private sectors.

Masonry Marketing Activities

Arkansas

None at this time.

Louisiana

None at this time.

Oklahoma

None at this time.

Texas

The marketing for the State of Texas is done by the Texas Masonry Council which is dominated by the Material Suppliers. Their focus is and has been the work with school districts and all level of government agencies to develop masonry-friendly code requirements. TMC has had some success in that arena, but they have lost focus on helping the industry create better and more qualified contractors who can and will perform the work within the required Codes and Standards.

Competitors/Trends

Arkansas

Arkansas remains stable though somewhat depressed. Outside competition has begun looking at some large specialized projects. Barriers to entry however are high due to licensing requirements, local competitor’s ability to be more limber, and the inability for outside labor to draw from local worker base. Cost of construction in Arkansas is very competitive. Outside competition is finding it difficult to compete; they have many costs including distance, differential construction methods, and confidence of the local general contractors. Contractors have to remain vigilant and perform well to prevent outside competition from opportunity.

Louisiana

The quality of the masonry construction has suffered from the influence of outside contractors who were not qualified to perform the work. They came into this market and used the federal system to get work and perform with unqualified workers and with little regard for proper construction standards because of the push by the Feds to rebuild the Gulf Coast area.

We know also have General Contractors who have decided to self-perform the masonry section of a project and in doing so have lowered the quality of the masonry work and created a more difficult marketplace for the legitimate masonry contractors.

Oklahoma

With all the issues considered, the outside influences to the local market have made a positive effect on the local contractors. We as competitors have discovered many ways to become more efficient and owner friendly. This in the long run benefits masonry by offering the best value, better service and an awakening of methods to communicate with the owners and architects to the benefits of using masonry systems.

Texas

Competition remains very high. Margins, despite reduced competition from company closures, have continued to be driven down as there is less overall work in the marketplace. Given the extreme economic conditions throughout the country over the past four years, many outside competitors have tried to enter the Texas Market. As the market in Texas is a highly competitive low cost market it is difficult to penetrate. Most contractors trying to enter have realized that with the volatility in the marketplace in combination with local general contractors’ lack of willingness to gamble their own reputation on the ability of out of town competition to employ local personnel and build projects on time have proven ineffective. General Contractors are also requiring more financial information on Subcontractors to try to assess their risk at using weaker competitors. While the southern sector of the state beings to pick up significantly, companies are trying desperately to hold onto manpower as the need for workers in other sectors such as oil and gas that may offer high paid jobs is beginning to erode the available workforce that appears stretched from the previous economic downturn. The lack of willingness of the Federal Government to address immigration is stripping the available manpower from companies who are trying to prepare to adhere to stricter regulation and oversight. This, in combination with contractors willing to misreport labor, is allowing those who cheat to win.

Safety Issues

Arkansas

No report at this time.

Louisiana

No report at this time.

Oklahoma

No report at this time.

Texas

The contractor base in Texas has a very high focus on Safety. Due to the overall size of the state, Texas remains at the top of the Federal Government’s watch list. OSHA is becoming more visible and more active in pursuing fines across many of the market segments.
About: Featured
 0
How It’s Made: Clay Thin Brick
May 2025

Clay thin brick is a versatile alternative to traditional full brick. It comes in numerous colors and styles and offers something for every design preference. Thanks to the lighter weight, it is designed to reach spaces full brick cannot. From floors to c

Allison Goley
Featured MAP Partner
Read More
Bonding with Masonry 2025: Q1
May 2025

This issue’s questions come from an Architect and a Mason Contractor. What questions do you have? Send them to info@masonrymagazine.com, attention Technical Talk. Q. An Architect asks how to create a narrow masonry pier between openings. Is there a min

David Biggs
Featured
Read More
American Treasure: Doak Campbell Stadium, Florida State University
May 2025

When you walk into Doak Campbell Stadium at Florida State University, the impact is immediate. It’s not just the roar of 79,000 fans or the iconic spear logo—it’s the walls themselves. Unlike most college football stadiums, which are built primarily of co

Cass Stern
Featured
Read More
10 Tips and Tricks to Keep Masonry Looking Its Best
May 2025

Cleaning new masonry can be a challenge, but when done correctly, it enhances the natural beauty of brick, stone, or concrete surfaces and helps them stay in excellent condition for years. While post-constructi

Darcy Boyle
Featured MAP Partner
Read More